Hennessy Fund’s Q2 2026 investor letter for the Hennessy Equity and Income Fund. The letter can be downloaded here. The letter discusses portfolio changes, emphasizing opportunities in equity and fixed income markets that can withstand economic uncertainty. The portfolio held businesses with a 23.0% pre-tax return on invested capital versus 16.1% for the S&P 500. The letter notes a reversal in U.S. equities, driven by AI spending and strong earnings, despite cautious sentiment among lower-income households. The focus on high-quality firms with durable advantages is expected to yield positive outcomes as valuation pressures mount, indicating that future market performance may hinge on fundamentals rather than speculative trends. The portfolio aims to capitalize on the overlooked valuations of quality companies, presenting significant investment opportunities. Also, check the fund’s top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Hennessy Equity and Income Fund highlighted Martin Marietta Materials, Inc. (NYSE:MLM). Martin Marietta Materials, Inc. (NYSE:MLM) is a building materials company that supplies aggregates and heavy-side building materials to the construction industry. On August 28, 2026, Martin Marietta Materials, Inc. (NYSE:MLM) closed at $531.05 per share, reflecting a market capitalization of $37.72 billion. Martin Marietta Materials, Inc. (NYSE:MLM) posted a one‑month return of ‑2.07%, while its shares lost 13.85% over the past 52 weeks.
Hennessy Equity and Income Fund stated the following regarding Martin Marietta Materials, Inc. (NYSE:MLM) in its Q2 2026 investor letter:
“The largest detractor year-to-date based on relative performance vs. the benchmark was Martin Marietta Materials, Inc. (NYSE:MLM). Shares were pressured by elevated expectations rather than any meaningful deterioration in fundamentals. Infrastructure and nonresidential demand remain supported by Infrastructure Investment and Jobs Act (IIJA) funding and data center construction, while recent acquisitions should enhance pricing, margins, and cash flow. We remain confident in Martin Marietta’s ability to compound earnings over the long term.”
Martin Marietta Materials, Inc. (NYSE:MLM) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Martin Marietta Materials, Inc. (NYSE:MLM) at the end of the second quarter, which was 65 in the previous quarter. While we acknowledge the potential of Martin Marietta Materials, Inc. (NYSE:MLM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
